A Company That Uses the Net Method of Recording Purchases

question 6

Multiple Choice

A company that uses the net method of recording purchases made a purchase of $400 with terms of 2/10,n/30.The entry to record the purchase would be:

• A)Debit Merchandise Inventory $392;credit Accounts Payable $392.
• B)Debit Merchandise Inventory $400;credit Discounts Lost $8;credit Accounts Payable $392.
• C)Debit Merchandise Inventory $392;credit Cash for $392.
• D)Debit Merchandise Inventory $392;debit Discounts Lost $8;credit Accounts Payable $400.
• E)Debit Accounts Payable $400;credit Discounts Lost $8;credit Cash $392.

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Definitions:

In Vivo Exposure

A behavioral therapy technique that involves facing fears in real-life situations as a way to overcome anxiety and phobias.

Talk Past Each Other

A communication failure where parties discuss different topics or argue different points, leading to misunderstanding and lack of resolution.

Early Negotiation

The process of discussing and resolving issues at an initial stage before conflicts or problems become more entrenched.

Halo Effects

A cognitive bias where one's impression of something or someone influences their feelings or thoughts about their character or properties.